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What’s a Software Token?

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Software tokens are digital security tokens used for two-factor authentication, emulating hardware tokens. They offer flexibility and ease of removal, but are less secure than hardware tokens as they can be intercepted by hackers. Soft tokens require a second authentication method such as a password or username.

A software token, or soft token, is a digital security token for two-factor authentication systems. Software tokens attempt to emulate hardware tokens, which are physical tokens required for two-factor authentication systems, and this security measure has both advantages and disadvantages. With a software token, an employee can receive a new token in seconds, but the token can be intercepted by a hacker or corporate adversary. Most of the time, the second authentication method used with software tokens is the employee password or a combination of username and password.

Enterprises and secure networks use two-factor authentication to protect private information. The definition of two-factor authentication is that two forms of identification are required to enter the system. In terms of soft tokens, the token is one of the factors required to log into the system and acts like the first of two passwords.

With a software token, an employee first requests a token from the server or administrator. If that request is granted, based on employee level or other security factors, the software token is digitally transported to your computer or mobile device. It’s not a hardware token, so the token is stored in the device’s virtual memory. Tokens take up very little memory, usually half of 1 megabyte (MB) or less.

After receiving the token, the employee satisfies one of the authentication factors. The second factor is usually the employee’s username, password, or both. When both of these security measures are met, the employee is granted access.

While a software token limits access and increases security, it is not as secure as a hardware token. With a hardware token, the token itself must be physically stolen, and if someone tries to duplicate the information, the token is programmed to erase its memory. If the digital transport channel is not secure or if the employee’s device has a virus, a hacker or corporate adversary can steal the software token. Some soft tokens have security constraints, such as only being available for a short time, but can still be used to grant access to non-employees.

The benefit of using a soft token is flexibility and ease of removal. If an employee needs a new token, either because it has been erased from memory or because the time constraint invalidates the current token, a new token can be granted within seconds. When an employee is fired from a company, a software token can be easily invalidated, while recovering a hardware token can be more difficult.

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